A. Export steel
B. Export DVDs
C. Exports steel and DVDs
D. There is no basis for gainful specialization and trade
Related Mcqs:
- To maintain its economic position, Japan has often limited the number of cars or the quantity of farm products that the United States can sell in Japan Japan has imposed these limits to develop ?
A. an equality of trade position
B. a favorable balance of trade
C. a more open market
D. a belief system - The comparative advantage comes if each trading partners has a product that will bring a better price in another country than it will at home. Which economist proposed the principle of comparative advantage ?
A. Adam Smith
B. David Ricardo
C. David Smith
D. Adam Ricardo - According to the principle of comparative advantage ?
A. South Korea should export steel
B. South Korea should export steel and DVDs
C. Japan should export steel
D. Japan should export steel and DVDs - If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?
A. will remain the same
B. will decrease
C. will increase
D. could either increase of decrease - Due to Japan’s high saving rate, suppose that the Japanese invest abroad. This investment may result in a/an _______ of the Japanese yen and therefore a for Japan?
A. appreciation; trade surplus
B. appreciation; trade deficit
C. depreciation; trade surplus
D. depreciation; trade deficit - The emergence of Japan as a world economic power has been based mostly on Japan’s ?
A. development of nuclear power
B. abundance of fossil fuels
C. strong traditional of military rule
D. business enterprise and organization - Absolute advantage is determined by ?
A. actual differences in labor production between countries
B. relative differences in labor productivity between countries
C. Both (a) and (b)
D. Neither (a) nor (b) - Country A has an absolute advantage in__________?
A. Product X
B. Product Y
C. Neither X nor Y
D. Both X and Y - If the countries were to trade along the lines of absolute advantage ?
A. A would export X to B
B. B would import Y from A
C. Neither country would want to trade
D. None of the above - Country A has an absolute advantage in ?
A. Beer
B. Wine
C. Both products
D. neither products
